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CME update: hog futures end narrowly mixed on fund-driven buying

US lean hog futures had a mixed day of trading on 5 January, with later contracts getting a lift from speculative buying.

6 January 2021, at 8:57am

Reuters reports that the rise in deferred contracts comes from speculative buying and broad strength in commodities as investors seek a hedge against inflation.

"Funds are entering the meat space," said Don Roose, president of Iowa-based US Commodities. "It's in vogue as the dollar sinks, as the debt rises in the US, that inflation is trying to pick up. And commodities are an inflationary hedge," Roose said.

CME February lean hogs settled down 0.300 cent at 70.925 cents per pound, snapping a four-session climb, while deferred contracts edged higher.

Wholesale pork prices softened, with US pork cut-out down $0.14 at $77.63 per cwt on Tuesday afternoon, according to the USDA.

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